EARNINGS MANAGEMENT BY DISCRETIONARY ACCRUALS IN BRAZILIAN STATES
DOI:
https://doi.org/10.51320/rmc.v26i2.1632Keywords:
Earnings Management, Accruals, Public Accounting, Cash basisAbstract
The aim of this article was to identify the behavior of discretionary accruals in Brazilian states and the Federal District. To this end, the Modified Jones statistical model and a panel data regression were used to operationalize the data. As for the study period, ten fiscal years were considered, starting in 2013 and ending in 2022. To this end, accounting information was collected from state entities, such as asset and financial values. The results showed that earnings management in state entities is a common practice and that the IPSAS, despite their essence, do not prove to be a factor inhibiting the practice. It can also be seen that managers seek to manage results in a positive way in order to convey an image of efficient management. There is also a reversal of discretionary accruals, sometimes accumulated positively and sometimes reversed negatively.
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